Newmark Security Share Discussion Threads

[hedgehog 100] 08/2/2024 18:41

Hedgehog 100 7 Jan '24 - 11:24 - 285 of 365 Edit 0 0 0
"NWT's striking rise is attracting new attention to the stock, including from this American defence-aerospace news portal ..."



Defense World has today again featured NWT, highlighting the stock's recent passing above its 200-day moving average:-

"Newmark Security (LON:NWT) Stock Passes Above Two Hundred Day Moving Average of $59.73

Posted by Defense World Staff on Feb 8th, 2024

Newmark Security logoNewmark Security plc (LON:NWT – Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of GBX 59.73 ($0.75) and traded as high as GBX 77 ($0.97). Newmark Security shares last traded at GBX 74.50 ($0.93), with a volume of 130 shares traded ..."




Though as on 7th. January they've got some of the info. wrong, e.g. reporting the m.a. as $59.73 rather than 59.73 pence.

But it does draw attention to NWT's quite striking share price breakout, and how this is attracting increased attention to the stock.


"What Is the 200-Day Simple Moving Average and How to Find It

By J.B. MAVERICK Updated October 01, 2023
Reviewed by SAMANTHA SILBERSTEIN
Fact checked by KATRINA MUNICHIELLO

The 200-day simple moving average (SMA) is considered a key indicator by traders and market analysts for determining overall long-term market trends. It is calculated by plotting the average price over the past 200 days, along with the daily price chart and other moving averages. ..."

[hedgehog 100] 08/2/2024 14:15

Some extracts from Paycor's new investor presentation, for its just-reported Q2 2024:-

"$38B underserved market with strong growth potential"

"Subscription-based business model with 94% FY’23 recurring revenue"

"<2% PYCR market share(2)
Modern HCM platforms comprise a small portion of the market"

"Our Disruptive SaaS Platform is Differentiated"

"Massive, growing & still underserved market"

[hedgehog 100] 08/2/2024 13:34

From Paycor's earnings call yesterday.

Its market is still in its early stages of growth, its offering is compelling, and its margins are expanding: all of which support a strongly confident outlook, especially when combined with the company's high level of recurring revenue:-

"Paycor HCM (PYCR) Q2 2024 Earnings Call Transcript

By Motley Fool Transcribing – Feb 7, 2024 at 8:30PM

Rachel White -- Vice President, Investor Relations

Good afternoon, and welcome to Paycor's earnings call for the second quarter of fiscal year 2024, which ended on December 31. On the call with me today are Raul Villar, Jr., Paycor's chief executive officer; and Adam Ante, Paycor's chief financial officer. ... With that, I'll turn the call over to Raul.

Raul Villar -- Chief Executive Officer

Thank you, Rachel, and thank you all for joining us to discuss Paycor's fiscal second-quarter results. We had another strong quarter with revenue growth of 20% year over year. Margins expanded 130 basis points over the prior year, while we continue to invest in sales expansion and in our innovative HTM suite. HCM demand is healthy.

Our deal pipeline is up significantly year over year, and our win rates remain strong. We continue to excel upmarket, especially among the higher end of SMB and enterprise customers with thousands of employees who tend to purchase a more holistic solution and are driving higher attach rates and higher average deal sizes. Our results demonstrate our consistent execution against our two primary growth drivers: increasing the number of employees on our platform and expanding the amount we charge per employee per month or PEPM. ...

We remain on track to grow our direct sales force approximately 20% this fiscal year to strategically increase our sales coverage in the largest U.S. metropolitan areas. As we expand our sales coverage, we are also increasing our broker coverage. We increased the number of active referring brokers by over 25% from the prior year, and 50% of our field bookings in the quarter were broker-influenced.

... This month, we introduced two powerful data-driven analytical tools that empower frontline leaders to unlock the potential of their people and business performance. ...

... Paycor recently received five branded hall technology awards which on our HR technology trailblazers. While we were acknowledged across our HCM suite, the core leadership framework that we launched a year ago won gold for the best advance in online coaching tools. ...

... We continue to strategically incorporate AI to add value to customers within our HCM suite, elevate our customer experience, and improve our efficiency and our customer experience organization. ...

Adam Ante -- Chief Financial Officer

... We ended the quarter with $62 million of cash and no debt.

As we look ahead, demand continues to be healthy for modern HCM solutions. ...

There's plenty of runway for sustainable growth as the vast majority of U.S. employees are still being paid by legacy systems. It's an essential capability for any business, and we're delivering compelling ROI for clients to switch. Adding to our opportunity is the continual expansion of our HCM suite, which has increased over 75% since fiscal 2019.

We are demonstrating margin expansion as we scale the business and believe there is significant opportunity to drive further leverage. We believe we are well-positioned to deliver strong revenue growth and improve profitability over the long term. ..."

[hedgehog 100] 08/2/2024 12:33

Paycor's excellent Q2 results surpassed estimates by quite some margin, which is great news for NWT:-

"Paycor HCM, Inc. (PYCR) Q2 Earnings and Revenues Surpass Estimates

Zacks Equity Research
Wed, February 7, 2024 at 10:45 PM GMT

Paycor HCM, Inc. (PYCR) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.07, delivering a surprise of 75%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Paycor HCM, Inc. , which belongs to the Zacks Internet - Software industry, posted revenues of $159.54 million for the quarter ended December 2023, surpassing the Zacks Consensus Estimate by 2.61%. This compares to year-ago revenues of $132.86 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Paycor HCM, Inc. Shares have lost about 7.4% since the beginning of the year versus the S&P 500's gain of 3.9%.

What's Next for Paycor HCM, Inc.

While Paycor HCM, Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. ..."

[hedgehog 100] 07/2/2024 21:38

Paycor HCM (NASDAQ: PYCR), a major North American partner of Grosvenor Technology, has just announced its second quarter results today, after close of the US markets.

And they should further buoy the confidence of NWT shareholders:-

"Paycor Announces Second Quarter Fiscal Year 2024 Financial Results

February 7, 2024 at 4:15 PM EST

• Q2 Total revenues of $159.5 million, an increase of 20% year-over-year, while expanding margins

• Q2 Recurring revenue of $147.2 million, an increase of 18% year-over-year

• Raised FY’24 revenue guidance to $650 - $656 million, an increase of 19% year-over-year at the top end of the range

CINCINNATI, Feb. 07, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor&rdquo;), a leading provider of human capital management (“HCM”) software, today announced financial results for the second quarter fiscal year 2024, which ended December 31, 2023.

“Paycor’s strong 20% year-over-year revenue growth is the latest demonstration of our success expanding employees and PEPM on our platform,” said Raul Villar, Jr., Chief Executive Officer of Paycor. “Quarterly recurring revenue growth accelerated 2% sequentially driven by continued success up-market and strong year-end form filings while our Embedded HCM Solution gained momentum.”

“We are proud of the operational performance across the business, which delivered margin improvement of 130 basis points year-over-year while we continued to invest in powerful analytics that empower frontline leaders. We remain optimistic about the HCM demand environment and opportunity to deliver strong revenue growth and improved profitability over the longer-term.”

Second Quarter Fiscal Year 2024 Financial Highlights

• Total revenues were $159.5 million, compared to $132.9 million for the second quarter of fiscal year 2023.

• Operating loss was $26.2 million, compared to $31.6 million for the second quarter of fiscal year 2023.

• Adjusted operating income* was $23.3 million, compared to $17.6 million for the second quarter of fiscal year 2023.

• Net loss was $26.2 million, compared to $27.5 million for the second quarter of fiscal year 2023.

• Adjusted net income* was $18.7 million, compared to $13.6 million for the second quarter of fiscal year 2023.

*Adjusted operating income and adjusted net income are non-GAAP financial measures. Please see the discussion below under the heading "Non-GAAP Financial Measures" and the reconciliations at the end of this press release for information concerning these and other non-GAAP financial measures.

Second Quarter and Recent Business Highlights

• Introduced Pay Benchmarking, providing market salary insights to enable competitive compensation strategies. More real-time data gives leaders greater confidence employees are paid fairly to drive retention and offers are extended at competitive rates.

• Launched Labor Forecasting, empowering leaders to right-size their labor costs to their operations by leveraging historical data and demand data forecasts, such as revenue, sales volume or customer foot traffic, to maximize ROI and service quality.

• Gained momentum with our Embedded HCM Solution, demonstrated by robust sales among existing partners and a growing pipeline of interested partners.

Business Outlook

Based on information as of today, February 7, 2024, Paycor is issuing the following financial guidance:

Third Quarter Ending March 31, 2024:

• Total revenues in the range of $185 - $187 million.

• Adjusted operating income* in the range of $45 - $46 million.

Fiscal Year Ending June 30, 2024:

• Total revenues in the range of $650 - $656 million.

• Adjusted operating income* in the range of $104 - $108 million.

*We are unable to reconcile forward-looking adjusted operating income to forward-looking loss from operations, the most closely comparable GAAP financial measure, because the information needed to provide a complete reconciliation is unavailable at this time without unreasonable effort.

Conference Call Information

Paycor will host a conference call today, February 7, 2024, at 5:00 p.m. Eastern Time to discuss its financial results and guidance. To access this call, dial 1-877-407-4018 (domestic) or 1-201-689-8471 (international). The access code is 13741610. A live webcast and replay of the event will be available on the Paycor Investor Relations website at investors.paycor.com.

About Paycor

Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders. For more than 30 years, we’ve been listening to and partnering with leaders, so we know what they need: a unified HR platform, easy integration with third party apps, powerful analytics, talent development tools, and configurable technology that supports specific industry needs. That’s why more than 30,000 customers trust Paycor to help them solve problems and achieve their goals. ..."

[hedgehog 100] 06/2/2024 14:00

Also huge credit to Paul Campbell-White, who joined NWT as Chief Financial Officer two years and five months ago:-

06/09/2021 13:47 UK Regulatory (RNS & others) Newmark Security PLC Board changes LSE:NWT Newmark Security Plc

"Newmark Security plc (AIM: NWT), a leading provider of products and services in the security and data sectors, announces that further to the notification on 22 July 2021, Paul Campbell-White has today joined the Company as Chief Financial Officer. He will be appointed as a director of the Company by 17 September 2021, following the announcement of the Company's results for the year ended 30 April 2021. Graham Feltham has stepped down as Group Finance Director and as a director of the Board of Newmark, with immediate effect.

The following information is disclosed pursuant to Rule 17 and Schedule 2(g) of the AIM Rules for Companies.

Paul Alexander Campbell-White, aged 48, does not currently hold any directorships and has held the following directorships in the past five years. ..."




The NWT share price then (on the basis of its 6.9.21. opening & closing price) was 56.25p consolidation-adjusted.

So at its current share price of 73.5p, it has risen by 30.67% during his tenure.


In comparison:-

The FTSE AIM All-Share Index (AXX), since the start of 6.9.21, has fallen by 42.61% (from 1310.15 to 751.88):-


FTSE AIM All Share Index (AXX):-




This actually represents NWT outperformance of c. 114%.

[hedgehog 100] 05/2/2024 13:37

I would add that Grosvenor Technology's profit growth since NWT acquired it, c. 22 years ago, has been nearly as good as its revenue growth.

Grosvenor reported a pre-tax profit of £2.196M. in its year ending 30.4.23:-

26/09/2023 06:00 UK Regulatory (RNS & others) Newmark Security PLC Final Results LSE:NWT Newmark Security Plc


Compared to its £547,000 pre-tax profit in 2001, that is just over a four-fold increase.

So not quite as good as the five-fold+ increase in revenue, but Grosvenor is currently in a very high-growth phase of international expansion, so you would expect the costs of this to be weighing slightly on profit at the moment.

And of course over half of Grosvenor's revenue in now American: in its year ending 30.4.23, £8.83M. (56.7%) of Grosvenor's revenue of £15.574M. was from North America. (£15.574M. equates to c. US$19.62M. at current exchange rates.)

So in summary re Grosvenor Technology:-
• Multi-million pound p.a. pre-tax profitability.
• Annual revenue of c. US$20M. equivalent.
• High-growth.
• Cutting-edge technology.
• Strong barriers to entry.
• Multiple strong growth drivers.
• Majority of revenues from America, the world's largest and hottest market.
• Operating in the HCM (human capital management) sector, one of the hottest tech sectors.
• Strong exposure to AI (artificial intelligence).

It's hard to see why this isn't worth a current valuation of at least a few £10s of millions, and with plenty of scope for that to increase by multiples going forward.

[hedgehog 100] 04/2/2024 12:31

16/08/2002 07:30 UK Regulatory (RNS & others) Acquisition LSE:NWT Newmark Security Plc

"... Newmark, a specialist integrated security provider, is to acquire
Grosvenor Technology Limited ('Grosvenor') for a maximum consideration of up to
£6.787 million in cash. The initial consideration will be a maximum of £3.287
million with a maximum balance of £3.5 million being paid over the next 48
months subject to an earn out. ...

In the financial year ended 31 October 2001 Grosvenor's pre-tax profit
was £547,000, more than double the figure for the year 2000. Turnover in 2001
was £3.016 million compared with a 2000 figure of £2.820 million. Grosvenor
currently has assets of approximately £2 million which includes £1.2 million in
cash. Current trading remains strong with a growing world-wide market. ..."




NWT acquired Grosvenor Technology nearly twenty two years ago, for £6.787M. (the full earn out balance was paid), at which time Grosvenor's annual turnover was c. £3M.

Fast forward c. twenty two years, and Grosvenor's annual turnover has grown to £15.74M., i.e. over five times as much.

Clearly a very impressive growth story, and one which seems to have accelerated more recently with the expansion into North America.

And yet NWT's current market cap., £6.89M. at 73.5p, is only about the same as the consideration paid for GT all those year ago.

Plus of course NWT has its Safetell subsidiary as well.


Even applying just the same PSR (price-to-sales) ratio now to value Grosvenor as in 2002, i.e. 2.25 sales, gives a valuation of c. £35M. for Grosvenor.

Though arguably a higher multiple should now be applied, because of Grosvenor's large revenues in America (with its higher ratings and greater growth prospects), strongly growing high margin SaaS revenues, long track record of success, far high revenues (giving more scope for economies of scale), and multiple strong growth drivers. As well as the fact that it's now publicly listed (as part of NWT), rather than being private, and the fact that larger companies often attract a higher stock market rating.

And if Grosvenor were to be sold, or spun-out in an American floatation, you would certainly expect an immediate and immense outing of its value from the current lowly level.

So there's no question that NWT's management have successfully created huge and growing value in Grosvenor for shareholders.

The fact that this is not currently reflected in NWT's share price is different: and indeed is clearly a buy opportunity for anyone with basic business and investment understanding.

22 years sounds like a long time, but that's how long it can take to build up a great, international business.
And it shows how hard it would be to replicate, i.e. the very strong barriers to entry here.


Moreover, NWT's management also achieved great success with the Safetell banking business, for years, before that sector when into steep decline with mass high street bank closures.

NWT actually achieved pre-tax profit of £2.52M. in its year ending 30.4.15, and its share price c. 8-bagged in c. 3 years, to the equivalent of c. 245p consolidation-adjusted.

10/08/2015 06:00 UK Regulatory (RNS & others) Newmark Security PLC Final Results LSE:NWT Newmark Security Plc
" ... I am pleased to report another year of revenue growth in the year ended 30 April 2015. Group revenue for the year was GBP22,854k (2014: GBP19,171k), representing an increase of 19.2 per cent. Revenue in the electronic division increased by 4.7 per cent from GBP7,234k to GBP7,577k, whilst the asset protection division revenue increased by 28.0 per cent in the year from GBP11,937k to GBP15,277k.
Profit from operations for the year was GBP2,268k (2014: GBP984k). Profit for the year before exceptional items was GBP2,268k (2014: GBP1,836K). The exceptional item last year was a development cost impairment of GBP852k. ..."




Good things don't always last forever, but NWT 'made hay while the sun was shining', generating the profits to subsequently build up its HCM technology and business in the way that it has, and also providing an excellent share price opportunity for shareholders to lock in some great multibagger profits.


I would draw an analogy here with Warren Buffett's Berkshire Hathaway, which he acquired as a dying textiles business in America:-


But he successfully used the last monies that that business was squeezing out, to reinvest in new and better areas, to huge success.

The typical pattern for a share in a dying business is for the share to go bust, &/or decline to virtually nothing, becoming a shell.
But that hasn't happened with NWT, and huge credit to them for that.


And if NWT's management can achieve such success in a declining business area, then it's exciting to think what they could achieve in strongly growing business areas, as indeed they are already doing.

[hedgehog 100] 03/2/2024 21:08

"Mediocrity knows nothing higher than itself, but talent instantly recognises genius."
Sir Arthur Conan Doyle



I believe that the term 'The American graveyard' used to be applied about British companies attempting to expand into the USA, because it so typically used to end badly.

NWT in contrast has succeeded where so many others have failed.

It was a bold strategic move to expand into America, and one which was the function of a clear long term vision, requiring enormous time, effort, and resources.

But this is clearly now paying rich dividends, with the company in a most enviable and exciting growth trajectory position in the world's largest economy.


In fact, NWT's is the most explosive small British share expansion into America that I have seen for decades.

Since the legendary Pentland-Reebok success, forty years ago.

American sales were key to the success of British 150-bagger Pentland Industries, which sold Reebok into the US through its US subsidiary Reebok USA Ltd.

" ... In 1987, Reebok’s sales totalled $1.4 billion—a thousand times what Fireman first generated in 1981. By 1988, that number had grown to $1.8 billion, with Reebok controlling 26.7 percent of the athletic footwear market and besting Nike’s $1.2 billion in revenue. ... "



Reebok is an excellent example of how investment into the right new products and services, to supply a compelling trend, can pay off handsomely as sales really take off - as they have been doing for NWT in America recently.


NWT's success stateside deserves to be the talk of the City; and I predict that in due course it will be.

It deserves to be highlighted in the "Financial Times" as a textbook example of a great British success story abroad; and studied in business schools as a model of how to expand successfully overseas.

There is quite simply nothing on the London Stock Exchange, that I am aware of, that compares to this. Nothing.

It stands out as a shining beacon of success, amongst a sea of mediocrity & manure.

[hedgehog 100] 01/2/2024 18:30

Recent Share Trades for Newmark Security (NWT)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
01-Feb-24 16:23:20 79.00 1,632 Buy* 70.00 80.00 1,289 O
01-Feb-24 16:18:32 80.00 68 Buy* 70.00 80.00 54.40 O
01-Feb-24 16:07:47 75.58 3,301 Buy* 70.00 76.00 2,495 O
01-Feb-24 15:56:02 74.50 3,348 Buy* 70.00 75.00 2,494 O
01-Feb-24 15:55:19 74.15 1,000 Buy* 70.00 75.00 741.50 O
01-Feb-24 15:50:15 72.60 3,436 Buy* 70.00 74.00 2,495 O
01-Feb-24 08:37:03 72.60 500 Buy* 70.00 74.00 363.00 O


So a wave of late buys has swept in, as bargain-hunting buying seeks to scoop up this cheap NWT stock.

With NWT closing up 2.5p (3.45%) to 75p (70p - 80p), on 13,285 NWT shares traded.

And with 79p being paid for the last trade, this window of opportunity to buy in for 80p or less may soon be closed.

[hedgehog 100] 30/1/2024 17:03

A new (c. three minutes) NWT video interview on Proactive Investors yesterday:-

"Newmark Security says momentum gained in its fiscal first half has continued into 2024

Published: 12:22 29 Jan 2024 GMT

Written by: Stephen Gunnion

Newmark Security PLC (AIM:NWT) CEO Marie-Claire Dwek takes Proactive's Stephen Gunnion through the company's first-half performance, which revealed strong underlying growth.

The company, which designs and manufactures physical security products, intelligent access control, timekeeping and identity management solutions, reported first-half revenues of £10.4 million and a gross profit of £3.9 million, marking an 11% increase after adjusting for the departure of UKG, a former client.

Notably, EBITDA soared to £5.8 million. The addition of three major clients in the first quarter contributed significantly to revenue. Additionally, Newmark Security has been actively expanding its service offerings, resulting in a notable increase in recurring revenue in HCM, totaling £2.3 million for the year.

Dwek expressed optimism about returning to profit after tax in the second quarter, anticipating a strong second half of the year bolstered by new clients and strategies. The company's focus on attracting more blue-chip customers across various sectors, including software houses in the US and major UK retailers, has been fruitful. Newmark Security's access control division has also seen success with blue-chip clients in the UK through distributors and dealers.

Looking ahead, the sales pipeline remains strong for the second half of the year. Newmark Security's strategic plan, which includes attaching services to hardware and introducing new products to existing partners, is proving successful."

[smithie6] 28/1/2024 13:50

And it doesn't pay a divi !!

Financial situation is so bad it can't pay a divi !

£5 million bank debt.

If it ever breaks a bank covenant one assumes the share price would get nailled.

[smithie6] 28/1/2024 13:48

Been 50-100p since ~200p except for a brief blip above 100p.

It is now 2024 !!

22 years !!

With inflation that share price has halved in value over 22 years.
HALVED !!


The Dweks have shown that this co. company is going nowhere with them in charge.

Have the co. websites been full of 'jam tomorrow ' claims ....since 2002 ?!!

[smithie6] 28/1/2024 13:43

£5 million bank debt

..been listed since , was it, 1997

One has to assume that the Dweks are not up to the job or the sector is so tough it is impossible to succeed.

They have had enough time imo.

£5 million bank debt.

And it has increased, not reduced !

=====

All the blah blah is imo just blah blah.

[hedgehog 100] 28/1/2024 12:11

"Recent Research

Our research is intended for professionals and institutional investors and is focused on the analysis of companies on AIM.

25 JAN 2024
Interims: Further progress against 2025 Growth Strategy
Newmark Security Plc"




"We have multi-sector expertise but use external analysts and consultants should the required industry knowledge not be available in-house. The research is circulated to our institutional client base and is readily available below to help generate interest and liquidity in the shares of our corporate clients."

"Newmark Security Plc
25 JAN 2024
Interims: Further progress against 2025 Growth Strategy"




Allenby Capital's Company Note on NWT is a 14-page document, featuring a current NWT price of 91p at the top.

Here are a few extracts:-

"Interims from Newmark Security plc, a leading provider of electronic and physical security systems, indicate further progress against its 2025 Growth Strategy of increasing the proportion of recurring revenue and services. Hardware-enabled software and services substantially increases Newmark’s addressable market, offers greater revenue visibility and margin accretion. At Grosvenor Technology (Human Capital Management and Access Control), annualised recurring revenue increased 77% in H1 to £2.3m meanwhile Safetell, the provider and maintainer of integrated doors solutions and physical security division, maintained its revenue growth (+24%) following its 2022 restructuring, product portfolio refresh and increased focus on services revenue. Newmark returned to profit in Q2 and this has continued in H2 and management anticipates FY revenue growth in both divisions. As higher gross margins and operational gearing come through, we would anticipate a rapid growth in profits."

"The loss of UKG had been anticipated for some time following the acquisition of Kronos Inc by Ultimate Software, a customer of Newmark’s GT clocks, in 2020, and subsequent renaming. Kronos was a multinational provider of workforce management and HCM software but also a major manufacturer of time clocks. The combination of two large HCM software companies but also one of the largest device manufacturers has created an opportunity for independents, such as Grosvenor, and it has secured three additional HCM software providers in H1. This has derisked the division but also created additional software and services revenue opportunities.

Within HCM, revenue in North America fell 20%, reflecting the UKG loss, to £3.9m but increased 42% in Rest of World to £2.1m, continuing the trend of FY23. Excluding the impact of UKG, underlying revenue growth for North America was 8%. Grosvenor has been successful in displacing competitor clock products through its entry level devices coupled with recurring revenue services and can also offer a higher level of cybersecurity with GT Connect achieving ISO 27001 certification."

"Management reports that the company returned to profit after tax in Q2 and this trend is continuing in H2. Overall, FY24 revenue is expected to grow in both Safetell and Grosvenor, despite the UKG loss, supported by a good spread of public and private sector contracts. As higher gross margin revenue streams grow, coupled with the effect of operational gearing, we would anticipate an acceleration in in profit growth. The current financing facilities are sufficient to execute its current plans."

[hedgehog 100] 27/1/2024 17:30

"The strong trading trend is expected to continue into the second half of the financial year, with both electronic and physical security systems divisions to grow in the full year."


FFt,

That statement is clearly clearly referring to H2 in full, with the second half of the sentence making that clear.

I.e. strong trading is expected for H2 as a whole.

So you look to be nitpicking a bit.

Re forecasts: I think that the company may start issuing them in due course, when they feel that the time is right: and it should become easier as the company grows, and the global economy recovers.

And in the meantime, I think that the company knows what they are doing in this regard.

Remember that NWT listed on AIM in 1997, under the current Chairman Maurice Dwek, so they are very experienced in these matters.

Whatever you personally want, you cannot just 'magic up' certainty about the future when there are too many variables that could potentially affect it.

Time and again you see small AIM companies throwing out forecasts which simply aren't worthy of the name; and 'wildly delusional hopes' would sometimes be a more accurate description.

So I'm happy to be invested here on the basis of 'no forecasts', which I think is currently the honest and responsible thing to do.


Related to this, I've noticed that some of the material on NWT's website has just been refreshed, and here's a snippet that is particularly worth noting:-

"Through our dedication to providing exceptional security supported by beneficial value-add services, we are strongly positioned for exponential – and profitable – growth."


Exponential profitable growth: that's as bullish as I've seen from the company - people who aren't known for their hyperbole - and it does highlight just how confident they are of the outlook here.


This heading on the home page is also new:-

"The Innovators of Security"


This is a noticeably greater emphasis on the company's cutting-edge innovation: innovation which helps to distinguish it, and make it so special.

And it certainly seems sensible to emphasise this.

[fft] 27/1/2024 13:56

What a useless statement in that proactive article.It said Strong trading *is* expected to carry on into H2. Either they have no concept of the use of English, or they are incredibly lazy and prepared this at the end of October for a previous presentation. We are now 3 months into H2 and would expect them to have said something like "strong trading has carried on into the first 3 months of H2 and we are confident of....".The way they have written it either means they are not going to do what they hoped for (whatever that is) or they have no clue or they don't want to tell us how they are doing.No forecasts. Nothing. Exactly the same issues I have mentioned here and to them.

[hedgehog 100] 27/1/2024 13:03

Another excellent new article just added to Grosvenor Technology's website: and a very apposite one, just ahead of Data Privacy/Protection Day tomorrow:-

"Insights

Ensuring Data Privacy in the Digital Age

Data security goes beyond just technological realms; it necessitates the need for greater awareness and responsibility from everyone; those that hand out data, as well as those that collect, process and store it.

Paul Smith
Head of Quality & Compliance

The digital revolution has entirely transformed our lifestyles and landscapes; from the daily scrolling of social media to the loyalty cards that exchange data for deals, our information is captured and catalogued in an abundance of ways.

But this increase in data collection and processing goes hand-in-hand with the more sinister practice of data theft. A recent report by Cybersecurity Ventures estimates that a global cyberattack will occur every 11 seconds in 2023, highlighting the urgency of robust data protection measures.

While malicious actors undoubtedly pose a significant threat, a surprising statistic emerges: 22% of data breaches stem from human error. This underscores the critical role of employee awareness and training in safeguarding sensitive information.

Types of cybersecurity threats typically include:

Phishing

Is the practice of sending fraudulent emails that resemble emails from reputable sources. The aim is to steal sensitive data like credit card numbers and login information. It’s the most common type of cyber-attack.

Ransomware

Is a type of malicious software. It is designed to extort money by blocking access to files or the computer system until the ransom is paid. Paying the ransom does not guarantee that the files will be recovered or the system restored, however.

Malware

Is a type of software designed to gain unauthorised access or to cause damage to a computer. It can steal data, disrupt operations, and even cause permanent damage.

Social engineering

Is a tactic that adversaries use to trick you into revealing sensitive information. They can solicit a monetary payment or gain access to your confidential data. Social engineering can be combined with any of the threats listed above to make you more likely to click on links, download malware, or trust a malicious source.

Building Trust With ISO27001

Data security goes beyond just technological realms; it necessitates the need for greater awareness and responsibility from everyone; those that hand out data, as well as those that collect, process and store it. And this is where standards like ISO27001 play a pivotal role.

ISO27001 is, essentially, a blueprint for data protection. It outlines best practices for everything from employee training and access controls to incident response protocols and risk management. By implementing this comprehensive framework, businesses can create robust defences against data breaches and cultivate a culture of data security.

But while more business embrace this standard, there is still a way to go. We should all accept responsibility for managing and protecting our digital lives, and Data Privacy Day serves as the perfect opportunity to remind us of that.

At Grosvenor Technology, we prioritise the security of data above all else, and we encourage you to do the same."




"Data Privacy Day (known in Europe as Data Protection Day)[1] is an international event that occurs every year on 28 January.[2] The purpose of Data Privacy Day is to raise awareness and promote privacy and data protection best practices. It is currently observed in the United States, Canada, Qatar[3], Nigeria, Israel[4] and 47 European countries."

[hedgehog 100] 27/1/2024 12:01

"Newmark Security hails underlying growth, expects stronger second half

Published: 08:23 25 Jan 2024 GMT

Newmark Security PLC (AIM:NWT) reported first-half underlying revenue and gross profit growth and said it is on track for a stronger second half.

Revenues of £10.4 million were generated in the six months ended 31 October 2023, down 2% year on year, which mostly reflected the People & Data Management (P&DM) division, Grosvenor Technology, losing its partner UKG after its merger the previous year.

Underlying earnings (EBITDA) came to £0.8 million, compared to £1.1 million a year earlier, and a loss after tax of £0.1 million was reported versus £0.5 million pre-tax profit last time.

Grosvenor’s sales were down 9% to £7.6 million, but this was partly offset by strong growth in the Physical Security Solutions division, Safetell, where sales grew 24%.

If stripping out the UKG impact, underlying group revenue grew 11% and underlying gross profit increased by £0.2 million.

Newmark said the group returned to profit after tax in the second quarter of the financial year.

The strong trading trend is expected to continue into the second half of the financial year, with both electronic and physical security systems divisions to grow in the full year.

“The group's existing financing facilities are sufficient to execute its current plans and both divisions are anticipating stronger sales in the second half, supported by a good spread of public and private sector contracts,” the company said.

Chairman Maurice Dwek said it was a successful period for Newmark as both divisions continued to execute their strategies and build a better platform for growth, as shown by 77% growth in subscription-based recurring revenues for Grosvenor’s Human Capital Management arm and Safetell’s 100% sales growth of entrance control products.

Dwek also pointed to the number of blue-chip clients being won across public and private sectors, including a ‘big four’ supermarket, a major UK utility and multiple police forces.

“Our sales pipeline is expanding and we are on track for stronger second half, with both divisions set to deliver full year revenue growth,” he said.

"Whilst we are watchful of the macroeconomic outlook and pending elections, the people and data security market continues to grow and we are confident that the group is in a stronger position to capitalise on the opportunities this will bring.”"

[smithie6] 26/1/2024 19:45

Davidosh
....we will see..

From it's low a few weeks ago MFX is up 30%. :-)
So maybe MFX is already beating TIME. ;-)
Depends on the starting date used.

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If MFX books in 4p EPS for 2023 (expected to report at the end of March) & perhaps target 5p for the current year, which has already started
..then if get the same p/e as Time (8) then 8 x4p for 2023 =32p. Currently 19.5p mid price. So, +64%.
If 2024 EPS target is 4.5p then 8 X 4.5p= 36p. +85%.
If 2024 EPS target is 5p then 8 X 5p = 40p.

For Time shares to be valued at a p/e of 8 times expected next reported annual EPS the uplift is....0% !, the share price is already there !

What p/e the mkt will award the MFX shares in the coming months, time will tell. Historically MFX shares have had a low p/e, I'm hoping that is about to change.

Time produced an impressive 35% H1 EPS growth. Waiting to see what MFX might do for its annual results or expect for 2024. While H1 was down, (mostly due to costs related to obtaining it's UK banking licence & setting up & staffing it's UK facility, in Basingstoke).

While MFX has a cap. value lower than Time, the loan book of MFX is about double the size of that of Time's. If MFX can get that loan book firing on all cylinders it surely should lift up the cap. value, imo.